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Dow Rises 67, Nasdaq Finishes Up 10

Google and IBM reported surprisingly solid fourth-quarter earnings late Tuesday, a hopeful sign for investors who expected tech companies to struggle at the end of last year.
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NEW YORK (AP) -- Strong earnings from tech giants nudged the stock market to a five-year high Wednesday. Investors drew encouragement from a vote by the House of Representatives to let the government keep paying all of its bills for another four months.

The Dow Jones industrial average rose 67.12 points to close at 13,779.33. That's the highest level since Oct. 31, 2007, a month before the Great Recession started.

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Google and IBM reported surprisingly solid fourth-quarter earnings late Tuesday, a hopeful sign for investors who expected tech companies to struggle at the end of last year.

IBM's results beat expectations, thanks to its lucrative Internet-based "cloud computing" business and sales of software services to Brazil, Russia and other developing countries. The company also raised its earnings outlook for the current year. IBM led the Dow's 30 stocks, rising $8.64 to $204.72.

Without IBM's 4 percent gain, the Dow would have been nearly flat.

Other indexes made slight gains. The Standard & Poor's 500 index inched up 2.25 points to 1,494.81, while the tech-heavy Nasdaq composite rose 10.49 points to 3,153.67.

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The stock market has climbed so quickly this month that it will likely take more than good earnings to keep it heading higher. "This market is really stretched," said Clark Yingst, chief market analyst at the securities firm Joseph Gunnar. "We've essentially gone straight up since January 2. There's certainly room for people to take profits."

The S&P 500 index is already up 4.8 percent in 2013. That's more than half of what most stock-fund investors hope to make in a single year.

The House passed a bill Wednesday afternoon to suspend the government's borrowing limit until May 19. Senate Majority Leader Harry Reid, D-Nev., said his chamber would immediately move the legislation to the White House.

House Republicans had previously said they would use the debt ceiling as a bargaining chip to push for deeper government spending cuts.

Google gained 6 percent after its earnings climbed at the end of last year as online advertisers spent more money in pursuit of holiday shoppers. Google rose $38.63 to $741.50.

Another tech giant, Apple, fell in after-hours trading after reporting sales that fell short of forecasts.

Slumping coal shipments have been a drag on railroad operators, but CSX and Norfolk Southern posted better revenue and profits than expected. The railroads managed to offset some of the hit from falling coal demand by getting more money from carrying car parts, building materials and other products.

Norfolk Southern rose $1.47 to $68.41 while CSX gained 87 cents to $21.68.

The quarterly earnings season is off to strong start. Of the 83 companies in the S&P 500 that reported through Tuesday, 54 have beaten Wall Street's estimates, according to S&P Capital IQ.

In the bond market, the yield on the benchmark 10-year Treasury note dipped to 1.83 percent from 1.84 percent late Tuesday.

Among other companies posting quarterly earnings:

- Advanced Micro Devices jumped 11 percent, making it the top stock in the S&P 500. The world's second-largest maker of microchips, behind Intel, posted a smaller loss and higher revenue than analysts had forecast. AMD rose 28 cents to $2.73.

- Coach plunged 16 percent, or $9.93, to $50.75. The luxury handbag maker said a challenging economy and heavy price-cutting by competitors weighed on its results. Rivals like Michael Kors have attracted more followers.

- McDonald's Corp. eked out a higher quarterly profit with the help of its Dollar Menu and the McRib sandwich. The world's biggest hamburger chain plans to roll out new menu items this year to support sales, including the Fish McBites. McDonald's inched up 53 cents to $93.48.

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Ratings

Overnights, adults 18-49 for September 29, 2016
  • 1.
    1.6/6
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    1.2/4
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    1.2/4
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    0.9/3
  • 5.
    0.6/2
  • 6.
    0.3/1
Source: Nielsen

Reviews

  • Rob Owen

    Easily fall’s best broadcast network comedy pilot, NBC’s The Good Place offers a clever high-concept premise that’s complemented with intelligent, sometimes absurdist humor. Created by Michael Schur, co-creator of NBC’s Parks and Recreation, The Good Place is a highly serialized series that’s essentially set in heaven and stars Kristen Bell and Ted Danson. NBC made five episodes of The Good Place available for review, and the show not only holds up, but also it improves, deepening characters that initially feel one-note and frequently leaving viewers guessing with cliffhanger endings to many of the episodes. The combination of snappy dialogue and winning but flawed characters makes The Good Place a great bet for fans of smart TV comedy.

  • Maureen Ryan

    Pitch has swagger, for good reason. It gets the big things right; the Fox drama about the first female baseball player in the Major Leagues is one of the year’s most assured and exciting debuts. But part of what impresses about the pilot is also the way it confidently strings together so many small but telling details. Ginny (Kylie Bunbury) is the first woman to be called up from the minors to the big leagues, and no show since Friday Night Lights has done a better job of portraying the internal and external pressures that weigh heavily on young athletes asked to do much more than merely succeed on the field. Pitch will likely do a good job of getting viewers to root for it. The hope is that the show won’t be an impressive, short-lived curiosity, but rather a long-term phenomenon.

  • Kevin Fallon

    In a fall TV season that’s already making a splash for championing diverse, distinctive voices in an array of projects that they created, wrote, and starred in, Better Things on FX stands out. The show is created by, written by, and starsPamela Adlon. She plays Sam Fox, the single mother of three daughters modeled after her own reality-show-ready experience raising three girls in Los Angeles following a divorce. Sam is also, like Adlon, a working actress — on shows both raunchy, a la Californication, and animated for children, like her role on Recess. It’s a refreshingly blunt take on single motherhood without sacrificing the warmth of parental love, portraying the dance between selfishness and selflessness that’s at the heart of being a parent — especially one weathering the hormonal fireworks of a household of four women at different ages.

  • David Wiegand

    The fall TV season doesn’t count as much as it used to — we already know that. But no matter how many retreads the broadcast networks throw at viewers in the next few months, this fall will be memorable because of the premiere of Atlanta on Tuesday, Sept. 6, on FX. The half-hour comedy created by and starring Donald Glover (Community), simply and brilliantly recalibrates our expectations of what a TV comedy is and how black lives are portrayed on the medium.

  • Louisa Ada Seltzer

    The second reboot of the 1980s John Candy movie Uncle Buck, bumped by ABC from midseason, has the same tired jokes you'll find on any second-rate sitcom. Too bad, because Mike Epps is appealing and ABC would be wise to keep him around for future shows, but there’s just not enough to this show to suggest it will last past summer. It also airs against NBC’s America’s Got Talent, summer’s No. 1 program on broadcast, which may make it even harder to find an audience.

  • Neil Genzlinger

    Bryan Cranston brings his Tony Award-winning interpretation of President Lyndon B. Johnson to television in an adaptation of the Robert Schenkkan play All the Way, and it’s still quite a sight to behold, just as it was on Broadway in 2014. Nothing beats witnessing this kind of larger-than-life portrayal onstage, of course. But the television version, presented by HBO, offers plenty of rewards, allowing Cranston to work the close-ups and liberating him from the confines of a theater set. Cranston’s performance is a gem — in his hands, this accidental president comes across as an amazing bundle of contradictions, someone who seems at once too vulgar for the job and just right for it.

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